Caledonia Investments to sell stake in wealth manager 7IM for $321.5 mln (updated)
05/09/2023 07:38
(Adds details, background and quotes throughout)
Sept 5 (Reuters) - Caledonia Investments CLDN.L said
on Tuesday it would sell its majority stake in wealth manager
Seven Investment Management (7IM) to Canada's Ontario Teachers'
Pension Plan Board for about 255 million pounds ($321.5
million).
The deal furthers the consolidation in Britain's money
management industry as private equity firms look to snap up
investment advisers to either sell them to a competitor or
publicly list them.
7IM provides wealth management, asset management and
platform services to more than 9,000 retail investors and 2,000
intermediaries in the UK.
Caledonia bought the company in 2015 from insurers Zurich
Insurance ZURN.S and Aegon NV AEGN.AS .
"Caledonia's investment philosophy is to focus on growth
over the long term, ensuring that our portfolio companies are
well-placed for exit when the right time comes for all
stakeholders," said Tom Leader, Caledonia's head of Private
Capital.
"Our investment in 7IM embodies this philosophy."
Caledonia expects the deal to be completed in late 2023 or
early 2024, it said. The company had net assets of about 2.8
billion pounds at July-end.
($1 = 0.7933 pounds)
(Reporting by Shashwat Awasthi; Editing by Subhranshu Sahu and
Janane Venkatraman)
((Shashwat.Awasthi@tr.com))